Auto insurance is regarded to be an important financial instrument which helps the vehicle owners to be secured against all possible damages which are caused by natural and manmade calamities. This type of insurance is very much mandatory for all existing and new vehicles that play on Indian roads. Auto insurance provides owners with basic coverage, in case, the car gets stolen or suffers any kind of damage or accident personal accident or third party liability coverage for the driver.
Policy coverage
These days, one can get hold different types of motor insurance policies from different insurance companies to choose the one that best fits their specific requirements and budget. The basic coverage which is offered by most of the insurance companies are fire, earthquake, explosions, hurricane, floods, landslide, hailstorm, etc. It also provides shield against burglary, theft, and accident during transit and others. Getting to know the policy in details can help the person to understand the coverage better and to make the right selection.
The policy also tends to safeguard the insured against various types of legal liability which may arise because of damages caused to other's property, death or permanent injury of any other person, called third party liability.
Personal accidental coverage is also provided to the insured, while co- passengers are offered with optional accident coverage.
The Insured is further offered with cashless garage facility for having the vehicle repaired irrespective of the state or city within the country.
Modified add-on coverage
Deprecation coverage is offered by the vehicle insurance policy during accidents and occurrence of damages, giving value of about 100% to replaced parts. Insured vehicle may avail repairing costs for rubber, fiber glass, batteries, tires, air bags, etc. If the vehicle is lost due to theft, then the insured can avail the car's invoice price with insurance and registration expenses.
Personal accident coverage is provided to co-passengers as add-on benefits for travelling in the vehicle during the unfortunate incident of an accident. The cash benefits may include medical care and medical costs during accidents. At the same time, no claim bonus has been termed to be a cash benefit provided to the insured for making very less claims during the previous year, in the form of an appreciation. This can be availed although the insured may change his existing vehicle for another one.
What is left out by the policy?
Regular wear & tear of the vehicle has not been covered in this policy. The insurance policy is also known to come with several exclusions such as general auto insurance policy, which does not offer protection against mechanical and electrical breakdown. If the vehicle is used for other purposes, other than personal use, then the insurance policy would stand invalid when making claims.
Again, if insured vehicle has suffered damage because of rash driving, negligent driving or due to influence of intoxicating drugs or alcohol, then such damages are non- payable by the insurance provider. Therefore, the owner needs to be very careful when going through the policy terms and conditions, before signing up for the purchase of the auto insurance policy.
Source : articlesbase.com
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